VRX Silica (ASX: VRX) has withdrawn the pro-rata renounceable entitlement offer announced on 10 April 2024 and instead will undertake a new renounceable pro-rata entitlement issue to raise $2.46 million.
The new renounceable entitlement issue is on the basis of one new fully paid ordinary share for every 13 shares held, at an offer price of $0.055 per new share, together with one free attaching option for every two new shares subscribed for and issued with an exercise price of $0.18 each and expiring on 31 August 2025.
Canaccord Genuity (Australia) Limited remains as lead manager and has agreed to fully underwrite the new entitlement offer.
The proceeds of the new entitlement offer will be applied towards VRX’s Muchea and Arrowsmith North silica sands projects, VDT trials and environmental follow-up, working capital and the expenses of the offer.
The decision to withdraw the original entitlement offer was made following consultation with Canaccord in the context of a challenging equity capital market for junior exploration companies and a consecutive closing share price floor being triggered under the underwriting agreement with Canaccord.
The VRX board believes the new entitlement offer provides the company with enhanced prospects of successful completion. The prosp[ectus for the new entitlement offer is expected to be lodged on 3 May 2024.
